Tenth Update 13 August 2014

This report will need careful study by the Commission. The Commission had already commenced investigations into relevant companies and the conduct of certain individuals involved. This report will now provide further information to assist any formal regulatory actions which may become necessary. The Commission will not be in a position to comment further in public until this process is more advanced. John Aspden, Chief Executive of the FSC, added “The report also identifies the complex and diverse nature of the Louis group of companies. Even though the majority of the group’s activities conducted from the Island were unregulated, there will be important lessons for the future to be carefully considered and implemented”.

Updated 10 June 2013 as follows

On 12 February 2013 the Commission made an application to the High Court of Justice of the Isle of Man for a costs Order against Alan Louis seeking that he be made jointly and severally liable for the costs of the proceedings to wind up the six Louis Group companies. The High Court had previously Ordered at the time of the windings up that the companies be liable for the costs of the winding up applications, as expenses of their liquidations.

At a hearing on 21 May 2013 before His Honour the Deemster Doyle in the High Court of Justice of the Isle of Man it was Ordered that Alan Louis pay the Commission’s costs, on an indemnity basis, of and incidental to the winding up claims against the six Louis Group companies, his liability to be joint and several with that of the six companies.

A copy of the Order of His Honour the Deemster Doyle may be read here.

The full written judgment of His Honour the Deemster Doyle in respect of the Commission’s claim of 12 February 2013 may be read on the Isle of Man Courts webpage.

Updated 16 May 2013 as follows

The Commission has been advised by the joint Liquidators deemed Official Receivers of the six Louis Group companies in liquidation that they have recently updated the format of the proof of debt forms for submission in respect of creditor claims against the companies.

The updated proof of debt forms are only required to be completed by creditors who have not yet made any claim in the liquidations. Creditors who have already submitted proof of debt claims are not expected to resubmit their claims.

The links to the proof of debt forms set out in our 6 February update below have been updated to link to the new forms.

Updated 6 February 2013 as follows

The Commission has been notified by the Liquidators of the six Louis Group companies in liquidation, that they are this week writing to parties that they believe have invested into products managed by Louis Group (Isle of Man) Limited (In Liquidation) or who have otherwise contracted with Louis Group (IOM) Limited (In Liquidation) for services. They are also this week writing to parties who they believe have creditor claims against the companies that have been placed into liquidation. Where email addresses are held by the Liquidators for parties they are sending the letters by email. Otherwise they are sending them by post. The letters contain, inter alia, important details regarding the proposed first creditors meetings of the companies which are to be held on 18 February 2013.

In order to assist in ensuring that as many of the relevant parties as possible are aware of the content of the respective letters we are posting links to them below. Parties should identify the documents relevant to them from the descriptions given

His Honour the Deemster Doyle has today handed down the text of his full judgment setting out his detailed reasons in respect of the winding up Orders referred to in our update of 23 January 2013. This full judgment has also been published today on the Isle of Man Courts website.

Updated 23 January 2013 as follows

A transcript of the brief reasons given by His Honour the Deemster Doyle for the making of the winding up Orders on the 21 January 2013, as referred to below, has been published on the Isle of Man Courts website. Detailed reasons are anticipated to follow in due course and a link will be posted here as soon as they are available to us. Copies of the Orders have now been received and are available on the following links:

At a hearing held today His Honour The Deemster Doyle, sitting in the High Court of Justice of the Isle of Man, Ordered that all of the above named companies be wound up. He also Ordered that Mike Simpson and Gordon Wilson be appointed Liquidators and deemed Official Receivers of all of the companies.

Copies of the Orders of the Deemster and the text of his judgment will be posted here as soon as they are available.

Updated 14 December 2012 as follows

On 12 December 2012 His Honour the Deemster Doyle sitting in the High Court of Justice of the Isle of Man heard an application from Louis Group (IOM) Limited seeking that provisional liquidators be appointed to that company pending the hearing of the Commission’s winding up application scheduled for 21 January 2013.

His Honour the Deemster Doyle granted the application and by Order appointed Gordon Wilson and Michael Simpson, of PricewaterhouseCoopers LLC, joint Provisional Liquidators and joint deemed Official Receivers of Louis Group (IOM) Limited.

Subsequent to the appointments reported by the Commission on 5 October 2012 (see original report below), full public hearings of the Commission’s applications to the High Court of Justice of the Isle of Man seeking the winding up, in the public interest, of Louis Group Structured Capital Limited, Louis Group International (Europe) Limited and LG SP Investments Ltd were listed for 10 AM on 3rd December 2012.

As a result of further information which came to the attention of the Commission, applications were also submitted to the High Court of Justice of the Isle of Man seeking the winding up, in the public interest, of Louis Group Structured Fund PLC, Louis Group (IOM) Limited and Louis Group SLN Limited. Full public hearings of these applications were also listed for 10 AM on 3rd December 2012.

Following applications by other parties in relation to the above hearings His Honour the Deemster Doyle, sitting in the High Court of Justice of the Isle of Man, has adjourned the full public hearings of all of the applications until 10 AM on Monday 21 January 2013.

Updated 25 October 2012 as follows

LOUIS GROUP STRUCTURED FUND PLC – Report of Joint Company Inspectors

On 1 May 2012 by order of the High Court of Justice of the Isle of Man Mr Michael Simpson and Mr Gordon Wilson, both of PricewaterhouseCoopers LLC, were appointed as joint inspectors to investigate and report on the affairs of Louis Group Structured Fund Plc. The Court also ordered that the appointment of the inspectors should not be made public.

The joint inspectors’ final report was submitted to the High Court on 21 September 2012. The findings in the report were relevant to the action taken by the Commission on 5 October 2012 – see previously issued statement of 5 October 2012.

An application was subsequently made to the High Court with regard to the publication of the Inspectors report. That application was considered by His Honour Deemster Doyle on 16 October 2012. A transcript of the judgment of Deemster Doyle in the matter has now been published on the Isle of Man Courts website.

Immediately following this judgment a further application was made to the High Court seeking that publication of the Inspectors Report be stayed pending a proposed appeal. The second judgment of His Honour Deemster Doyle dated 16 October 2012 , regarding that application, has also now been published on the Isle of Man Courts website.

On 23 October 2012, the High Court having been notified that the proposed appeal was not to proceed, His Honour Deemster Doyle lifted the restriction on publication imposed on 16 October 2012. The Commission is therefore now able to publish the report of the joint inspectors on the affairs of Louis Group Structured Fund PLC.

First issued 5 October 2012 as follows

The Financial Supervision Commission (“the Commission”) has made announcements concerning intervention in the affairs of the Louis Group Structured Fund PLC and other companies under the Commission’s powers or with the consent of the High Court. Further details are contained in announcements issued with this statement, which cover:

Louis Group Structured Fund PLC – appointment of persons to assume control of the affairs of the scheme, under section 13 of the Collective Investment Schemes Act 2008. Further details can be found here;

Louis Group (IOM) Limited - appointment of a manager under the Financial Services Act 2008. Further details can be found here;

Louis Group Structured Capital Limited, Louis Group International (Europe) Limited and LG SP Investments Ltd – appointment of joint liquidators provisionally on an ex parte basis pending a full hearing. Further details can be found here.

The Commission appreciates that investors will be anxious to establish the implications of today’s announcements. This statement is linked to a “Frequently Asked Questions” (“FAQ”) sheet which can be found here.

The FAQ sheet includes information for investors in:

Louis Group Structured Fund PLC

Secured Loan Notes (“SLNs”)

Property Investment & Cessation of Securities Agreements (“PICS”)

Property investment companies

In the event of queries please contact the Commission by email at the following address: [email protected]